5220 STARKEY RD, ROANOKE, VA 24018-9358

Corporate Guaranty from Top 5 Operator in the Country (272+ Locations)

• Child Development Schools, Inc. is one of the Top 5 Corporate childcare companies in the country.
• Child Development Schools, Inc. currently operates over 272 locations across eleven states.

7+ Years Remaining | Absolute NNN Lease

• The CDS Inc. corporately guaranteed lease, has over 7 years remaining with four, five-year options to extend.
• The lease features 10.00% rental increases every 5 years and continuing into the option periods, growing NOI and hedging against inflation.
• The lease features zero landlord responsibilities, allowing for a passive investment for a new landlord.

Affluent Area with AHHI Exceeding $137,000 in 1-Mile

• Roanoke, Virginia, known as the “Star City of the South,” is a vibrant mountain city of nearly 100,000 residents located in the Blue Ridge Mountains.
• As the largest city in Western Virginia, it offers a blend of urban amenities, rich railroad heritage, and easy access to outdoor recreation, including the Blue Ridge Parkway and over 1,000 miles of trails.
• Situated in the Roanoke Valley between the Blue Ridge and Allegheny Mountains along Interstate 81, the city serves as a hub for industry, finance, and healthcare in southwestern Virginia.
• The economy has transitioned from a focus on railroad manufacturing to a mix of services, technology, healthcare, and tourism.

Demand For Child Care Remains Extremely Strong

• The U.S. child care market size was valued at USD 60.4 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.18% from 2023 to 2030.
• The key factor driving the growth is the rising demand for early daycare & education services with more parents returning to working in offices, the rising number of single & working mothers, advancements in learning technologies for children, and the accessibility of government funding.
• The expenditure on daycare in the U.S. is very high. As per the cost of care survey facilitated by the U.S. Department of Health and Human Services, the expenditure on these services reached up to 7% of the household income in 2021.
• Families in the U.S. are willing to spend more on child care services, indicating the high service demand in the U.S.